Help to Buy Equity Loans guide discussion

dhokes

bethw29 said:

Hello, 
does anyone think there is any chance the government will extend the current help to buy or increase the cap on the new help to buy? I live in Leicestershire and the cap is £259000 for the new scheme, for this you can buy a 2 bed in most places and they are like a postage stamp. The development we are looking at won’t be ready until after the scheme ends. I don’t want to rush into buying a house to take advantage of the current scheme if the house isn’t right for us. 

HELP! 

Isn't the scheme available until 2023? - https://www.helptobuy.gov.uk/equity-loan/help-to-buy-equity-loan-2021-2023/

And, have prices risen that drastically?! I bought a 2 bedroom in Leicestershire for under £190k around 2 years ago using HtB. What development sites are you considering?

hannah_ldn

Hi, thinking about using the Help to Buy Equity Loan in London. Was just wondering if it is possible to use the LISA (Lifetime ISA) to put towards the 5% Deposit required to apply for the loan and mortgage? 

Beksf1

Needing some advice re: mortage alone vs with help to buy equity loan.

I am in process of buying new build home off plan. The property is 186 ,995 and have put down reservation deposit. I would have a deposit of 14 % - 11% gift from family and remaining 3% as cash gift from property developer. 

My mortgage in principle is around 162,000. Should I go solo with mortgage whereby the mortgage from lender would be near the top of my MIP - 161,000 or should I opt for help to buy ?

Finally with help to buy if I had deposit contribution of 14% what percentage would need to be added for mortgage?

Many thanks.

grumiofoundation

hannah_ldn said:

Hi, thinking about using the Help to Buy Equity Loan in London. Was just wondering if it is possible to use the LISA (Lifetime ISA) to put towards the 5% Deposit required to apply for the loan and mortgage? 

Yes - as long as property fulfils criteria of both schemes.

Pobi

NEED URGENT HELP!

Hi, after looking for a perfect house for a long time (that is available before help to buy runs out) we finally chose one, paid the deposit and applied for a mortgage. Unfortunately, the developed never registered the plot for help to buy (apparently because of COVID) and now he is struggling to register it, he was told that the scheme is moving onto the new help to buy and they are not registering any more houses? He is in talks with the HTB manager and apparently raising a complaint. I am not sure where that puts us? The house was advertised as help to buy that is the only reason why we went for it. We have sold our own house, and we are worried we will be left with nothing. Please help. 

hellzking

I have purchased through help to buy equity loan already and currently have enough money available to reduce the government's equity stake by 10%. The money i have saved though is more than enough to get a buy to let property as well. Can I buy to let a second property while i still have some remaining govt equity in my first home purchased through help to buy? 

poboxfh

I bought a flat using the help to buy scheme last year. I expect a big increase in my salary next year and I believe I will be able to afford to purchase a buy-to-let flat (mortgage of course). Can anyone please tell me if this is "legally" possible? Is there a requirement to pay the government equity loan back before being able to invest in a 2nd property?

grumiofoundation

poboxfh said:

I bought a flat using the help to buy scheme last year. I expect a big increase in my salary next year and I believe I will be able to afford to purchase a buy-to-let flat (mortgage of course). Can anyone please tell me if this is "legally" possible? Is there a requirement to pay the government equity loan back before being able to invest in a 2nd property?

Don’t believe anything is stopping you buying a 2nd property while owning a property with HTB loan. 

Must be an impressive salary increase that allows you to save 25% deposit for a BTL (plus the 3% SDLT, solicitor fees etc) within <12 months! 

Whether starting a residential letting business (with the associates financial risks and effort required) is sensible is of course another question (vs putting the money into other investments inc. pension, paying of equity loan etc...) 

dhokes

Has anyone paid off their loan recently? Am I stupid for trying to pay off my loan now with the run up to Christmas as I imagine Target will be closed for the festive period?